Filed under: Procter and Gamble (PG), Options

J.M. Smuckers (NYSE: SJM) closed at $53.75 Tuesday.

The WSJ is reporting SJM is near a deal to buy Folgers from Proctor & Gamble (NYSE: PG) in an all stock transaction.

Deutsche Bank says: "From an economic standpoint for SJM, we calculate the deal would be about $0.25 per share dilutive on an annual basis."

SJM over all option implied volatility of 27 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com